Waterdrop Inc. today updated its prospectus, announcing an offering price range of US $10-12. Waterdrop Inc. plans to issue 30 million shares of ADS, and the underwriter has an over-allotment right of about 4.5 million shares of ADS.

Waterdrop Inc. raised up to $414 million, valuing the company at close to $5 billion.

The cornerstone investors of Waterdrop Inc. include Wang Huiwen, Boyu Capital and Hopu Capital, which have subscribed for a total of 210 million US dollars.

Among them, Wang Huiwen subscribed $30 million through the family trust fund Kevin Sunny, Boyu Capital subscribed for $100m, and Hopu Capital subscribed for $80 million.

Boyu Capital is the leading investment institution in the C round financing of Waterdrop Inc. Company. Hopu Capital has invested in NIO Inc. Automobile, XIAOMI, Shangtang Technology and other companies. Wang Huiwen was Shen Peng's superior during Meituan's time. He led Shen Peng and others to create Meituan takeout.

In 2020, Wang Huiwen subscribed $20 million in front of Li Auto Inc. IPO through Kevin Sunny, a family trust, a return of more than 70 per cent based on Li Auto Inc. 's offering price of $11.50.

It has lost 1.2 billion in three years and has not yet made a profit.

According to the prospectus, Waterdrop Inc. 's income from 2018 to 2020 was 238 million yuan, 1.511 billion yuan and 3.028 billion yuan respectively, and its net losses were 209 million yuan, 322 million yuan and 664 million yuan respectively. After adjustment, the losses before tax, interest, depreciation and amortization (EBITDA) were 140 million yuan, 159 million yuan and 247 million yuan respectively, and the three-year loss rate was 58.93%, 10.52% and 8.17%, respectively.

Although the loss has narrowed somewhat, Waterdrop Inc. has not yet made a profit, mainly due to high sales and marketing expenses. From 2018 to 2020, sales and marketing expenses were 185 million, 1.056 billion and 2.13 billion, respectively.

By the end of 2018, 2019 and 2020, the number of paid insurance users of Waterdrop Inc. was 1.7 million, 8.8 million and 19.2 million respectively.

With the expansion of the number of users, the proportion of natural flow and repurchase of regular users in Waterdrop Inc. 's first year's premium has risen to 38.5%, while that of Waterdrop Inc. and Waterdrop Inc. has dropped to 16.6%. The main traffic comes from third-party traffic channels, accounting for 44.9%.

Tencent is a shareholder and the founding team has 71.2% of the voting rights.

The updated prospectus also shows Waterdrop Inc. 's ownership structure.

Before IPO, the core management of Waterdrop Inc., such as founder Shen Peng, co-founder Yang Guang and Hu Yao, held 26.4% of the shares, making them the largest shareholder.

Image Frame Investment (HK) Limited, the investment company owned by Tencent, owns 22.1% of the shares and 11.9% of the shares of the investment funds affiliated with Boyu Capital.

Investment funds affiliated with Gaorong holds 6.5 per cent; Swiss Re Principal Investments Company AsiaPte.Ltd., owned by Swiss Reinsurance, owns 5.7 per cent.

Waterdrop Inc. company adopts AB ownership structure, with different rights of the same share. Only the founding team holds Class B common shares, each with 9 votes.

After the IPO, core management such as Waterdrop Inc. founder Shen Peng, co-founders Yang Guang and Hu Yao held 24.4% of the shares and had 71.2% of the voting rights.

Image Frame Investment (HK) Limited, an investment company owned by Tencent, holds 20.4%, with 7.8% voting rights, while Boyu Capital holds 11%, with 4.2% voting rights.

Gao Rong's Gaorong holds 6 per cent and has 2.3 per cent of the voting rights; Swiss Re Principal Investments Company AsiaPte.Ltd., owned by Swiss Reinsurance, owns 5.2 per cent and has 2 per cent of the voting rights.